Correlation Between BioNTech and VHAI

Can any of the company-specific risk be diversified away by investing in both BioNTech and VHAI at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BioNTech and VHAI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioNTech SE and VHAI, you can compare the effects of market volatilities on BioNTech and VHAI and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BioNTech with a short position of VHAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and VHAI.

Diversification Opportunities for BioNTech and VHAI

0.0

Correlation Coefficient

BioNTech  VHAI

Pay attention - limited upside

The 3 months correlation between BioNTech and VHAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and VHAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VHAI and BioNTech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BioNTech SE are associated (or correlated) with VHAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VHAI has no effect on the direction of BioNTech i.e., BioNTech and VHAI go up and down completely randomly.

Pair Corralation between BioNTech and VHAI

If you would invest (100.00) in VHAI on December 29, 2024 and sell it today you would earn a total of  100.00  from holding VHAI or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BioNTech SE  vs.  VHAI

BioNTech SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

VHAI

Risk-Adjusted Performance

Very Weak

Over the last 90 days VHAI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, VHAI is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with BioNTech and VHAI

The main advantage of trading using opposite BioNTech and VHAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, VHAI can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VHAI will offset losses from the drop in VHAI's long position.

The idea behind BioNTech SE and VHAI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.